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THE MINISTRY OF TRADE

CIRCULAR No.02-TM/XNK OF FEBRUARY 21, 1997 GUIDING THE IMPLEMENTATION OF DECISION No. 28-TTg OF JANUARY 13, 1997 OF THE PRIME MINISTER

Following Circular No. 01-TM/XNK of January 24, 1997 of the Ministry of Trade;

Proceeding from Official Dispatch No. 674-BKH/TMDV of January 31, 1997 of the Ministry of Planning and Investment on the 1997 import quotas after consulting the concerned Ministries and branches (as stipulated in Article 4 and Article 6 of Decision No. 28-TTg);

The Ministry of Trade provides the following concrete guidance for implementing Decision No. 28-TTg of January 13, 1997 of the Prime Minister with regard to a number of imports:

I. LIST OF COMMODITIES AND THEIR IMPORT QUOTAS IN 1997:

- Steel: 500,000 tons

- Steel cast: # 900,000 tons

- Cement: 500,000 to 700,000 tons

- Clinker: 1,100,000 tons

- Construction glass: # 2 million m2

- Trucks, passenger cars: # 30,000 units

- Paper: # 20,000 tons

- Sugar:

II. IMPORT MANAGEMENT MECHANISM:

1. Steel:

a/ Those kinds of steel which have been sufficiently manufactured in the country shall not be imported (listed in Appendix No. 1 enclosed herewith)

b/ The quota for importing various kinds of steel which are not yet manufactured or insufficiently manufactured in the country: 500,000 tons

Including:

+ Steel of various kinds (listed in Appendix No. 2 attached herewith): 400,000 tons

+ Sheet steel cast for making pipes and tubes and galvanized iron sheets: 100,000 tons

+ The Ministry of Trade shall assign the Steel Corporation to import 40 per cent of the aforesaid quota and the enterprises having import and export business permits for the suitable commodities to import the rest.

c/ In 1997, some 900,000 tons of steel cast shall be imported (including the amount imported by foreign-invested enterprises): The Ministry of Trade shall assign this quota to the steel rolling mills or import and export enterprises that have signed supply contracts with the steel rolling mills.

d/ Other kinds of special-purpose steel (listed in Appendix No. 3 attached herewith): the enterprises with import and export business permits for the suitable commodities may import these kinds of steel according to their production and business demand and fill in the import procedures at the Customs office, without having to go through the Ministry of Trade.

2. Cement:

- The Ministry of Trade shall direct the additional import of approximately 500,000 to 700,000 tons by assigning the Cement Corporation to import about 40 per cent of the needed quantity and the enterprises which meet the conditions in terms of capital, supply market and import experiences to import the remaining quantity.

- Clinker: 1,100,000 tons

On the basis of the cement production plan, the Ministry of Construction shall directly assign the above quota to cement plants without having to go through the Ministry of Trade. These cement plants may import clinker directly or through agents in accordance with current regulations.

3. Construction glass:

The Ministry of Trade shall assign the enterprises with import and export business permits for the suitable commodities to import approximately 2 million m2 of construction glass from more than 3 mm to less than 12 mm thick which can not be manufactured or is insufficiently manufactured in the country. The imported construction glass shall be used mainly for the construction in Southern provinces.

For all kinds of color glass and other kinds of glass (including transparent glass less than 3 mm and over 12 mm thick) the enterprises with import and export business permits for the suitable commodities may import them according to the production demand, and shall fill in the import procedures at the Customs office without having to go through the Ministry of Trade.

4. Automobiles:

- The quota for importing all kinds of trucks and passenger cars of 12 seats or more in 1997 is approximately 30,000 units. This quota shall be assigned by the Ministry of Trade to the enterprises with import and export business permits for the suitable commodities which need to import such kinds of automobiles.

- For other kinds of automobile, the enterprises with import and export business permits for the suitable commodities may only import them according to their need and in compliance with current regulations.

5. Paper:

a/ The following kinds of paper which are sufficiently manufactured in the country shall not be imported in the immediate future:

- Newsprint, writing paper, normal printing paper, toilet paper

- Flat paperboard and cardboard of all kinds.

b/ The Ministry of Trade shall assign the enterprises with import and export business permits for the suitable commodities to import about 20,000 tons of paper of various kinds which can not be manufactured or is insufficiently manufactured in the country, including:

- High-quality printing paper

- Duplex cardboard paper

In case of necessity, the Ministries and branches shall consider supplementing the quota to ensure the balance between supply and demand.

c/ For other kinds of paper, the enterprises with import and export business permits for the suitable commodities may import them according to the production and business demand and fill in the import procedures at the Customs office without having to go through the Ministry of Trade.

6. Sugar:

As the output of domestically manufactured sugar is expected to satisfy consumption need in 1997, it shall not be imported in the immediate future, excluding 10,000 tons of RE sugar already imported to meet the people�s need in the lunar new year holidays and as reserves for the Northern region.

In case of necessity, the Ministries and branches shall consider importing additional quantities of sugar to balance the sugar supply and demand and stabilize its price.

III. IMPLEMENTATION PROVISIONS

The management of the import of other commodities shall comply with Circular No. 01-TM/XNK of January 24, 1997.

The Ministry of Trade asks the other Ministries, the ministerial-level agencies, agencies attached to the Government, the People�s Committees of the provinces and the cities directly under the Central Government and the central offices of the mass organizations to popularize this Circular to the enterprises under their management for the implementation thereof, and at the same time to inform the Ministry of Trade of any problem arising in the course of implementation for timely and suitable adjustment. This Circular takes effect from the date of its signing to March 31, 1998.

For the Minister of Trade

Vice Minister

NGUYEN XUAN QUANG

APPENDIX 1

(attached to Circular No. 02-TM/XNK of February 21, 1997 of the Ministry of Trade)

LIST OF KINDS OF STEEL SUFFICIENTLY MANUFACTURED IN THE COUNTRY AND NOT TO BE IMPORTED

- Smooth steel rods from 6 mm to 60 mm in diameter

- Barbed steel rods (striped, noded, twisted, veined) 10 mm to 26 mm in diameter

- All kinds of V-shape steel from 20 mm to 75 mm

- All kinds of I(H)- or U(C)-shape steel from 60 mm to 120 mm

- Black welding steel pipes and tubes and zinc-plated welding steel pipe and tube from 14 mm to 115 mm in outer diameter

- Flat, zinc-plated steel sheets from 0.25 mm to 0.55 mm thick and up to 3,500 mm long, corrugated zinc-plated steel sheets and corrugated steel sheets plated with non-ferrous metals

- Assorted ordinary wires, black and soft, black and hard, zinc-plated and barbed wires

- B-40 steel grid.

APPENDIX 2

(attached to Circular No. 02-TM/XNK of February 21, 1997 of the Ministry of Trade)

LIST OF KINDS OF STEEL NOT YET MANUFACTURED OR INSUFFICIENTLY MANUFACTURED IN THE COUNTRY TO BE IMPORTED

Total quantity 500,000 tons

- V-angle and L-angle steel from 80 mm to 300 mm: # 25,000 tons

- U(C)-shape steel over 120 mm thick: 15,000 tons

- I(H)-shape steel over 120 mm thick:15,000 tons

- Steel sheets of 3.75 mm or less thick: 200,000 tons

Including:

+ Material steel sheet for making pipes and tubes and zinc-plating: # 100,000 tons

+ Zinc-plated steel sheets and steel in rolls plated with non-ferrous metals for making corrugated iron sheets: 100,000 tons

- Steel plates from 3.75 mm to 34 mm thick: 120,000 tons

- Other kinds special-purpose construction steel: 125,000 tons

- Steel cast from 45 mm x 45 mm to 130 mm x 130 mm: 900,000 tons

APPENDIX 3

(attached to Circular No. 02-TM/XNK of February 21, 1997 of the Ministry of Trade)

LIST OF KINDS OF SPECIAL-PURPOSE STEEL FOR WHICH THE IMPORT PROCEDURE TO BE FILLED IN AT THE CUSTOMS OFFICE

1. U-shape and I-shape steel of 400 mm and over

2. Tin-coated sheets

3. Steel bands (packing hoop, saw blades, bicycle bands...)

4. Siliceous sheets of (-) 41 and over for making transformers (-)

5. Enameled, thin sheets

6. Spring steel (vehicle and carriage springs)

7 Caliper steel (locks, Tu Son standard)

8. Pit-prop steel, rail

9. P43 rail

10. Steel for making balls

11. Core strand of welding rods

12. Core strand of aluminum cable

13 Tire rims, spokes

14. Cold cast, silvery steel

15. Steel of hollow profile

16. Steel cables, bicycle�s break cable

17. Steel tubes of steamers, transformers

18. Oil pipes (100 and over)

19. Stainless steel pipes

20. Black pipes of large size (from 500 upward)

21. Alloy steel

22. Steel for making chain parts

23. Ferro manganese 1.5

24. Other ferros

25. All kinds of copper

26. Aluminum wires plus tubes and aluminum ingots for making aluminum cable

27. Antimony

28. Antipitxong

29. Magnesium

30. Other non-ferrous metals

31. Lead ingots, lead wires

32. Zinc sheets used in printing

33. Welding materials

34. Aluminum cable.-